To ask you for everything you know about Child Trust Funds

[vincentseyes]

Hi there,

Posting in AIBU for traffic mostly.

Bit of backstory - I'm 17, 18 early next year. A year or so ago my parent mentioned that I had a Child Trust Fund though she didn't know how much was in it. I'm just wondering how it works, and how much (on average) money there is in it? (obviously unreasonable to ask anything specific, but there's a big difference between £50 and £5000 for my life, though of course I'd be grateful for either).

I'm also wondering if I need any kind of evidence / information. I'm no longer in contact with either of my parents, will that affect anything and do I need to get any information from them to access the money?
Can I look at any account balances before I turn 18, and will the pandemic have affected any of the money in there? Sorry if a stupid question, I'm just not especially knowledgeable on this area of finances.

Was also wondering if the fact that some of the money would go to a house deposit and if it were the majority of the deposit, would that make me less attractive in relation to getting a mortgage? I'm a full time student but I'm married to someone who works full time, and the house might end up in his name depending on my credit score.

If anyone has any info on CTFs, I'd be very grateful. Thank you!
x

www.moneyadviceservice.org.uk/en/articles/child-trust-fund-accounts?fbclid=IwAR1gla52_ojnQnlEO5zObTemL52vWcSoEHhtsUvc2PlNcF3Vyd8Fvn4t1vs

Depends if they added extra funds to it or if it was just the original amount given by the government. One of your parents will be a named person that all paperwork was sent to.

@AldiAisleofCrap Thank you for the link!

I've read the full thing but still have a few questions;

-Do you know if parents can pull money out of the account at all?
-Can I see how much money is in it before I turn 18?
-How are they going to contact me, or do I have to find out the provider and contact the bank? I'm not in the same country as I was born in, nor using the same bank.

@dementedpixie Do you know if I need to get in contact with my parent(s) for any information / the paperwork?

1. No they can't take the funds out as its in your name
2. depends if you can get the details of where the funds are held. I get an annual statement for my dc's CTF
3. you need to know who the CTF provider is. It may not be a bank

It very much depends on whether your parents invested any extra sums to the account during its life time.

I have just checked my DS's, he is almost 16 and it is currently valued at £1,148.

We have not put any money it to it at all.

Don't know if that is in any way helpful OP? It might give you some idea of the amount to expect.

The government would have set one up for you if your parents didn't nominate one. Initial amount was £250.and I think another payment was made around the age of five.- but again just a few hundred pounds. I added just £1200 to my sons and it's in an invested fund and is worth about £2800 now (he is 17).
It is yours at 18. You can take the money or roll it into an ISA or whatever. I don't think it matters a jot in terms of your deposit - it is a perfectly good use of the money, but as I said it isn't a lot.

No parents cannot access your money, yes you can find out the balance yourself from age 16.
They would write at the address you hold but that would have happened soon after you turn 16 ( my dd has just turned 16) best thing to do is use the advice in the link to trace your account.
Are you still in the Uk eg you moved Wales to England? Or abroad?

www.gov.uk/government/publications/list-of-authorised-child-trust-fund-providers/child-trust-fund-account-providers

There are loads of providers. Think ours are with Foresters

Sorry address they held for you.

Just skim read as busy, so not answering fully but last time I checked my child's (17) it was around £500-£600 having not added to it, I think they all went into one account regardless of which bank it was opened through a few years ago - take a look at Onefamily.com

If your parents haven't been adding into the CTF, it's unlikely to have anything more than a few hundred pounds I'm afraid. Originally, they were opened (for your age group) with either £250 or £50o (for low income families) and people could add to them, or choose not to.

The money belongs to you - you can check where it is held here

www.gov.uk/child-trust-funds/find-a-child-trust-fund

@dementedpixie Thank you!!

So is the money protected all throughout my childhood, or is it just protected after I turn 18 (in reference to my parents being able to take it out?) We had a falling out and I'm wondering if they're able to remove money - sorry sounds very selfish but it does affect my long term choices!

If I find the CTF provider, do I have to contact them / let them know how to contact me? I just read a thing that says they'll get in touch a month or two before my 18th but I'm not sure how they would (unless it means get in touch with my parents?)

They can't access it. Information about you finding it here www.gov.uk/child-trust-funds/managing-the-account There is likely to be a couple of hundred if they didn't add to it. It was set up with a starting bonus from the government. If it's a shares trust fund yes the pandemic will have affected it.
Don't ever let a house you call home not be in your name. You are very young to be married and I'm not sure how you've managed that tbh as your parents have to give consent until your 18? Don't allow yourself to be disadvantaged because your age limits your credit score. Your name should be on the house.

Funnily enough I was looking at this yesterday as I realised that I have no idea where my own kids' CTFs are!

Here you OP- a link telling you how you can go about finding yours: https://www.gov.uk/child-trust-funds/find-a-child-trust-fund?utmsource=sfmc&utmmmedium=email&utmcampaign=2109ERETP+CTF+Email+2&utmmterm=https%3a%2f%2fwww.gov.uk%2fchild-trust-funds%2ffind-a-child-trust-fund&utmid=1332491&sfmcc_id=160001652

Any money added to it could not be withdrawn except to change providers. They would have written to you at your parents address. Yes it would be worth contacting them if you find who the provider is

Since you are over 16, you can take control of the account. Regardless, your parents cannot access it, or withdraw it, at any time.

I would find the provider and give them your new contact details, as you are over 16 and can take control of the account yourself.

@LEELULUMPKIN Thank you that's helpful!

I've just scanned all the emails between me and my mum from a year or so ago, and from what she said she (very loosely) guesstimated 10-20k and said she had been putting money in, but I'm wondering if this is likely to be true / realistic? Do you automatically get yearly updates on your child's CTF? Sorry if any of these are stupid questions.

@AldiAisleofCrap I'm still in the UK, born in England and moved to Scotland, so obviously my address won't be the same as the one registered (and my parents don't know my current address so they won't have been able to update it). Will there be any issues because I'm not in the same country anymore?

I get a letter every year near my dcs birthday to tell me how much the CTF is worth (not that much tbh). We pay in £25 per month I think.

@pandafunfactory I'm in Scotland, so the age for marriage is 16 without parental consent.

I just remembered I did actually find the provider ages ago and I've got a screenshot of the letter on my phone that says HSBC (Sorry I forgot, I didn't know how to proceed with it when I got the letter) What's the next step for me, do I need to do anything or just wait? I'm 18 in Jan.

I can’t answer your trust fund queries but this stood out to me-

I'm married to someone who works full time, and the house might end up in his name depending on my credit score

You’d be nuts to put yourself into a position where your name is not on the house you live in.

You’d be better off waiting a few years until you’re finished studying and can purchase a house jointly.

Plus a bank will want to see a history of being able to earn, live, and save which you won’t be able to provide for a few years into adulthood.

@dementedpixie I can imagine that the payments might have stopped due to the conflict with my parents, but it's good to know that you get CTF updates as a parent. When it comes to transferring out of the CTF, does it make a difference if it's my DH's account or mine?

I'd contact them as you can take control of the account from age 16. You could get the correspondence address changed too

Ah I'd forgotten that about Scotland.

Don't put a large sum of money in somebody else's account. I don't care if he's your husband. Just don't.

@VodselForDinner Does marriage entitle me to anything, and can I be a joint owner if I don't work right now / have a good credit score? Or would it worsen our mortgage rates?

I know that it's a riskier position, but we're sinking hundreds of pounds per month into renting